The ACA is not about making sure that every American has affordable healthcare! Its about controlling the populace and making large sums of money for the insurance and pharmaceutical companies along with the federal government through IRS fines! Create a boom in pharmaceutical prescriptions. With the pill epidemic that is effecting every state in the nation do we really need millions of more prescriptions written??? This is also a potential boost for the entire pharmacy-benefits and drug delivery business. Pharmacy operator Walgreen (NYSE: WAG ) has been a very vocal promoter of Obamacare for months since it understands that an influx of enrollees could create a boom in pharmaceutical prescriptions. Those prescriptions have to go somewhere, and Walgreen figures: Why not its stores? For the year that just ended, Walgreen reported just a 0.4% increase in prescriptions filled despite owning 19.1% of all retail pharmacy market share. Obamacare, therefore offers Walgreen a path to accelerate its prescription growth once again. Similarly, this could be a great opportunity for pharmacy-benefits management company Express Scripts (NASDAQ: ESRX ) to shine. More prescriptions written mean more drug delivery orders for Express Scripts. With generic fill rates moving higher, pricing power is improving for both PBMs like Express Scripts and end retailers like Walgreen, which should have a net positive effect on margins. Clearly for optimists and investors in these stocks to feel comfortable, theyd like to see an extension of this trend toward ACA-favorability last longer than just a month, but its nonetheless a good start for the time being
Posted on: Sat, 26 Oct 2013 10:57:01 +0000
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